Recent content by gulatin2

Netflix reports earnings tomorrow and we all know how NFLX has performed so far this year. You can hear both sides arguing strongly about this name especially as we get closer to earnings release event. On a similar thought process, there are traders who lean on selling premium or buying...

Way I would recommend is start reading in reverse order Meaning Buying Put Options - Why , when , How , risk, figuring out circumstances when put buying is prudent - This approach will help you in broadening your perspective , put you through thought provoking There are several books...

It's funny to see you stating I am doing all this analysis in hindsight , If you look up my write up - my rationale was IV too low, less IV drop expected and by the way IV for Dec Options has came out by 0.3 ts not even 2.3 points which I expected. Believe it or not I still think IV in Dec...

We see a lot of people who like to follow the herd behavior of selling premium into earnings and trying to pocket the vol drop as the earnings are announced. People often argue selling premium has the edge but edge is only present if limited people are doing it- if everybody out there is...

As I posted yesterday options are meant to be sold & not to be sold, which necessarily doesn't imply buying them. But for GOOG yesterday when I looked up IV's across the next six months they were way too low. Meaning there was no edge selling premium for GOOG yesterday. Now if they are not...

If you look at Implied vol across different tenors, vol is priced in the cheapest for GOOG heading into earnings tonight. ATM straddle is pricing 3.6% move as opposed to 5.7% average move , this stock has experienced over the last 14 qtrs. Now the question to ask is - Is the vol priced low...

Indeed Vol for strangle has came in too but vol crush is more near the money as opposed to OTM strangle. More loss on 67.5 has in fact created profits which has offset the loss in OTM strangle for me. As I stated at that specific moment it was priced in more which made it good timing to sell...

Why don't you other side of this trade if you feel so strong about it In-fact the position I had is up 11.5 % since I put it this after noon. Front month has came in 2.30 points since then..

Look at the trade structure I had put on and what my thesis for putting that structure was.. You might have different opinion than mine & might take the other side of that trade and I guess that 's what creates the market

Looked at the order flow , looked at skew chart in Live vol , Interestingly 65 was priced cheaper than 67.5 's In fact skew chart at 65/67.5/70 looked quiet similar to a butterfly shape at that specific moment , wish I had taken a screen shot that time

That's the position I ended up putting eventually Apr 65/67.5/70 added extra 60/70 strangle to ride the strong move up or down if there is one Reason 1. ATM 65 were priced cheaper than 67.5 , 70's were quiet flat - Buy Low sell high - edge created by buying Low IV and selling High IV...

IV for BM will come in by atleast 11.56 points after release, FM straddle is priced in at cheapest levels in last 8 qtrs, and what's interesting to me is that option market has even discounted the risk of blow ups as we see in last few earning releases, so that is making me incline to short vega...

Put on 3 May60/65/70 flys and added May 60/72.5 strangle as hedge for blow up - May IV to drop by at-least 11.56 points after earning Guys what do you think of this trade structure